Corporate China sets tone in global digitalization

MRCM share / 2019-12-16 / Hits(449)

E-commerce, retail, finance among sectors that have gained big time

Corporate China is embracing in-depth digital transformation, and has led the world in the digitalization of consumer-oriented products or services, backed by its strong market vitality and large talent pool, experts said.

E-commerce, mobile payments, retail, finance, entertainment … China's corporate sector has made significant progress in such segments in terms of digitalization, driven by the internet-savvy consumers, said Jeongmin Seong, senior fellow at the McKinsey Global Institute, a consultancy.

In 2005, the country contributed only 1 percent to global e-commerce sales. But, by last year, that figure skyrocketed to 46 percent, according to McKinsey research. The penetration of mobile payments in China is three times higher than that of the United States, it said.

Seong said China has a large market for digital consumption with its 850 million netizens and over 200 million "data natives"-those 25 years old or younger, who were born and grew up with the rapid development of the internet. They are more willing to pay for new digital services.

Besides, piles of digital companies spring up every year, which creates fierce competition and cutting-edge innovations. The government also provides free space for companies to make early-stage market trail, all resulting in the boom of the digital economy, he said.

Last year, China's digital economy reached 31.3 trillion yuan ($4.45 trillion), accounting for 34.8 percent of the country's GDP, data from the China Academy of Information and Communications Technology showed.

"It is no secret that digitalization has become one of the main arteries powering the pulse of the global economy and also a strong driver of the ongoing, comprehensive transformation of China's economy," said Wang Yanping, general manager of public affairs at LinkedIn China, an online social network for professionals. He was speaking at the release of a report co-published by the School of Economics and Management of Tsinghua University and LinkedIn China in October.

Digital transformation of industries can also be reflected in talent flow from information and communications technology (ICT) industries to various fields, according to the report.

According to another report released by the two institutes in November, by then, the proportion of digital talent in non-ICT industries was higher than that in ICT industries globally. Among non-ICT industries, those with the highest proportion of digital talent were manufacturing, healthcare, finance, corporate services, consumer goods, education and social media.

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